Well I did few things. Oil change and catch can install... Not good news (and possible some good news).
Everything is coated in a small even layer of very finely ground metallic dust as well.
Posted it up on facebook and instagram and tagged Texas Speed, they finally responded on how it wasn't normal. They should be contacting me today to see what happens. I am assuming they will want me to send my engine to them and if they determine they did something wrong, fix it under warranty. If they don't think it was because of them I will be presented a bill for labor and if I want them to fix it, a parts list/bill for that as well.
I also received the catch can. Built a simple mount for it out of some scrap metal bar.
Funny enough I was looking at it before the local club meeting and had some friends check to make sure the hoses didn't collapse under vacuum... They did instantly... So I put on the good rubber fuel/oil hose that won't collapse under vacuum.
Edit: Texas Speed isn't going to warranty the engine, but still want me to send it back for a tear down. Not worth the time/money to send the engine to them. I'll just either have a friend help tear it down, or have one of the LS guys here tear it down. 417 Motorsports is extremely good and seems to know Texas Speed. Owner is an acquaintance/friend as well.